Sonu, Monu and Ashu were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. On 31st March, 2022 their Balance Sheet was as follows:
Balance Sheet of Sonu, Monu and Ashu as at 31st March, 2022
| Liabilities | Amount (₹) |
Assets | Amount (₹) |
|---|---|---|---|
| Creditors | 35,000 | Bank | 22,000 |
| General Reserve | 25,000 | Stock | 25,000 |
| Debtors 20,000 | |||
| Capitals : | Less: Provision for bad debts 2,000 |
18,000 |
|
| Sonu 50,000 | Furniture | 15,000 | |
| Monu 30,000 | Land and Building | 80,000 | |
| Ashu 20,000 | 1,00,000 | ||
| Total | 1,60,000 | Total | 1,60,000 |
On the above date, the firm was dissolved on the following terms:
(i) Land and Building realised for ₹85,000, Furniture realised for ₹6,000 and Debtors realised full amount.
(ii) Stock was taken over by Sonu at book value. There was an unrecorded asset which was taken over by Ashu for ₹3,000.
(iii) Monu agreed to bear all realisation expenses. For his services Monu was paid ₹2,000. Actual expenses on realisation amounted to ₹2,200.
(iv) Creditors were paid at 2% less.
Prepare Realisation Account.
Marks-5, CBSE:2021-22/Term-2/Zone-4/Set-1/Q-8*